Hugo Boss has no plan to delist, top investor says

By Antonella Ciancio

MILAN (Reuters) - Hugo Boss has no plans to delist its shares and the Marzotto family, among the leading shareholders of the German fashion house, is in it for the long term, the family's top representative Gaetano Marzotto said on Thursday 13 May.

Photo: www.hugoboss.com

Hugo Boss shares soared as much as 6.5 percent last month on speculation the Marzottos might be planning a buyout with co-owners private equity firm Permira.

The Marzottos, one of Italy's best-known textile families, promptly denied the speculation, but an Italian newspaper later reported a delisting plan might have been behind the move.

"Being on the bourse is very important to us. If we wanted to go private we could have done it last year," Marzotto told Reuters on the sidelines of a fashion conference. "(Delisting) would have cost us much less than recapitalising the company."

In December, Permira and the Marzotto family -- which together control a company that holds 55 percent of Hugo Boss's voting shares -- injected 250 million euros of cash to cut the debts of Valentino Fashion Group (VFG), under which deal Hugo Boss ceased to be part of VFG.

The Italian family still controls the two fashion groups via a 22 percent stake in the Red & Black holding company.

"We are long-term investors. We have been in Hugo Boss since 1991. We believe in the companies," added Marzotto, who sits on Hugo Boss's supervisory board together with his brother Luca.

Marzotto, now in his mid-50s, said he expected Hugo Boss and VFG to grow in coming years, helped by the split. "We think that both companies have a very strong potential in the next three to five years," he said.

"In the first quarter (VFG) has made extraordinary progress in terms of cash generation. This trend continues," Marzotto said. "Shops are providing positive cash flow."

Hugo Boss has identified China as one of its key markets in Asia as it tries to be less dependent on Europe. It is in talks with its Chinese franchise partner and fashion retailer Rainbow Group to start a joint venture, sources told Reuters on Wednesday 12 May.

Another source with first-hand knowledge of the matter told Reuters on Thursday 13 May a "strong partnership" with Rainbow would be unveiled in June.

archives Hugo Boss

...borders," said NAP founder Natalie Massenet, who will oversee editorial content of the group as executive chairman.Yoox boss, founder and minority shareholder Federico Marchetti will become chief executive and...

...importance of Africa, destined to quickly become "an alternative." It is significant that Ermenegildo Zegna, MC and Hugo Boss have recently opened stores in Lagos, Nigeria, "the new luxury hotspot," while online...

...Investors including private equity firm Permira have sold off their holding in Hugo Boss for around 950 million euros ($1 billion), leaving Italy's Marzotto family as the German fashion group's biggest shareholder

...November's strategic update were working, enabling it to combat the discounters' threat and Tesco, whose turnaround under new boss Dave Lewis appears to be gathering pace.Shares in Sainsbury's, down 14 percent over...

...and 34 jewelry and watch designers. The aim for the site was to attract high-end brands, as it succeeded in doing with Boss Orange by end of the year. With 200 million customers, Amazon generated a turnover of...

...announced the opening of its first flagship store in Paris. It will be located at 372-374 Rue Saint-Honoré, a former Hugo Boss store, in one of the city’s most prestigious shopping districts, and is expected to...

...eyewear creator, which currently generates most of its 1.1 billion euros in revenue through its licenses (Dior, Fendi, Hugo Boss, MaxMara…), has thus launched Safilo Kids.Kids Collection by Safilo Presented in...

...selling shareholders in a 25-building development conservatively valued at more than two billion euros ($2.2 billion).Hines boss Manfredi Catella would not disclose how much the Qataris had paid but hailed their...